The Keyhole makes observations about consumers, brands, ads, & marketing, through a predictive customer loyalty lens. Most marketing is ineffective to today's bionic consumer, given undifferentiated products, loss of "brandness," & hard to come by profits. Marketers talk about "engagement" but nobody seems to be doing a very good job measuring or integrating it into what they do & it shows! The Keyhole opens a dialogue on this subject & suggests real-world solutions with the marketing community.

Wednesday, September 25, 2013

Health Fact: someone 25 years old today will live 2.5
additional healthier years than a person born 2 decades ago. The nuance in that
statement is the “healthier” part. People have been living longer, but not
necessarily healthier. Some of that “not necessarily healthier” part comes from
our diets.

The Center for Disease Control and Prevention reports 35% of
adults are obese, Whether you’re “obese” is dependent upon your height and
something called a BMI, or Body Mass Index. It’s all very scientific, but the
bottom line is most consumers know when they’re carrying around a few too many pounds,
and that obesity is not a good thing. Obesity contributes to heart disease,
stroke, type 2 diabetes and even certain cancers. And if you know obesity is linked
to what you eat, you’d, well, watch what you eat. But we don’t, so as a brand
and emotional engagement differentiator, certain brands have taken it upon
themselves to position themselves as being more “healthy.” Or at least more
helpful when it comes to being healthy. Fast food brands have done that for
years.

According to our 2013 Customer Loyalty Engagement Index,
here’s how major fast food brands are evaluated when it comes to being healthy
by their own customers:

Subway 90%

McDonald’s 85%Burger King 84%Wendy’s 83%KFC 80%

Subway has pretty much made health their brand positioning.
Of course you have to be careful what you add to that basic tuna $5 foot long
or the calories and fat add up pretty quickly, but OK, a relatively healthy
perception. The other brands could use a “health” boost if they want to meet their
customers’ expectations.

To that end, Burger King is introducing a French fry with 30
percent fewer calories and 40 percent less fat, called “Satisfries.” The new
version will have 150 calories versus the 226 calories in their regular fries. Will
this help? Well, it’s a start. Burger King has introduced juices and other
better nutritional choices over the years, but it’s one thing to add them to
the menu and another thing to get consumers to actually buy them. You can never
be sure about that.

Of one thing we can be sure, though. Americans love their potatoes.
Of the 45 pounds of vegetables the average American consumes each year about 29
pounds (65%) of that are accounted for by potatoes. Assuming your average annual
potato consumption were confined to Burger King “Satisfries,” you’d be talking
about 188 servings, representing a savings of 14,288 calories or 4.08 pounds
fewer that you’d be carrying around. Again, it’s a start.

Of course primacy of product, how it actually tastes, and
how the new offering is advertised and promoted will be the ultimate test of
whether consumers are engaged with this new potato positioning. If you meet
customer expectations, you are virtually guaranteed to succeed. If not,
consumer will drop you like. . . well, you know that outcome.

Find out more about what makes customer loyalty happen and how Brand Keys metrics is able to predict future consumer behavior: brandkeys.com. Visit our YouTube channel to learn more about Brand Keys methodology, applications and case studies.

Wednesday, September 18, 2013

You can’t help but notice the speed at which technological
change moves these days, and no matter how fast, the difference between what
you want and what you get. Technological change doesn’t move quite as fast as
consumer expectations, but almost. But today “almost” isn’t good enough for
consumers, and the difference between meeting expectations and almost meeting
them is huge. Really huge. So different brands look to meet expectations in
different ways

Take smartphones, a category where consumer expectations have
moved up more than 28% over the past 4 years. What caused that jump? Well, different
things. Some emotional, and some rational, but mostly emotional things. Things
like a desire for greater speed so you can manage your life better, and more apps
so you can have fun and manage your life at the same time. Or an interesting design
and new technologies nobody else has, like biometrics, because you are an
in-the-know trend leader, provides a pride of ownership, or just need really,
really high levels of security, or think you do. Our surveys show that most
smartphone brands have been able to keep up with these expectations on average
about 10%, so there’s a gap between what consumers want and what brands provide
and, thus, an opportunity for a smart brand that appreciates the difference.
And that’s not all. When you factor in the more rational aspects of
consumerism, like price and value, and perceived brand value and the brand’s
ability to serve as a surrogate for added value, it’s even more different, and
requires different brand management and strategies.

Apple, one of the category’s trendsetting leaders, has been
able to keep up with consumer expectations by about 12%, so a little ahead of
the pack and not bad when you remember that real consumer expectations are
unconstrained by reality and don’t have to actually be worked out in a laboratory
bunker someplace in Cupertino, CA. Anyway, to try and meet these different and growing
expectations, Apple is trying something different. More accurately two “differents,”
and just introduced two new iPhones – the 5S and 5C.

The new 5S has a faster processor and a fingerprint scanner,
so that’s different. The 5C, on the other hand, is priced at $99 (with a
service contract) and is pretty much a repackaged iPhone 5, but the lower
pricing is a different strategy for Apple. Now, for all those consumers who
have hungered for an Apple iPhone but couldn’t manage the dough, it’s currently
On Sale.

It’s a different story for RIM’s Blackberry. Four years ago RIM
was category leader with a 41% share of the OS market and more than 50% of the
market for phones that could browse the web and send emails. Not anymore. They’ve
put up a “For Sale” sign.

Why? Well, the short explanation is consumer delight turned
to expectation. The longer explanation can be found in the smartphone emotional
engagement assessments in our January 2013 Customer Loyalty Engagement Index. Blackberry
showed up at the very bottom of the rankings and significantly lower than those
very high expectations consumers held for the category Ideal. Their
long-delayed Blackberry 10 didn’t do it for consumers, even with a Super Bowl
commercial, and their loss of corporate and governmental clients didn’t help. The
current Q2’13 estimates have Apple at a 40% share of the smartphone marketplace,
Samsung with 25%, and HTC and Motorola at about 9% each. Although 9% is looking
pretty good to RIM right about now -- that’s what they had last year. This
year, alas, it’s about 3%, down again.

This July, RIM CEO, Thorsten Heins, told shareholders, “. .
.from my personal experience visiting a lot of countries, it is a challenge in
the U.S,” a kind-of corporate-speak for “darn all you U.S. consumers and your
high expectations!” At the time Mr. Heins also indicated, “We will take this
challenge on,” corporate-speak for “we have no idea what you expect.” So last
month Blackberry hired J.P. Morgan Chase to explore “strategic alternatives,” which
we’re pretty sure is corporate-speak for “we’re-for-sale-and-will-consider-any-reasonable-offer.”
Companies like Lenovo, Microsoft, and Samsung have been mentioned in the press as
potential buyers, but one has to wonder if RIM would be sold off for parts, or –
given their exceptionally low levels of emotional brand engagement – whether Blackberry
is so damaged it would end up having to be jettisoned. Remember Palm?

In all Brand Keys surveys, for all categories, customer expectations
continue to rise as consumers continue to want more and more and more. Marketers
need to pay particular attention to the incontrovertible fact that here’s a big
difference between brands that are able to meet customer expectations, and
those that can’t.

Find out more about what makes customer loyalty happen and how Brand Keys metrics is able to predict future consumer behavior: brandkeys.com. Visit our YouTube channel to learn more about Brand Keys methodology, applications and case studies.

Wednesday, September 11, 2013

It’s
Fashion Week and the results of the 2013 Brand Keys Fashion Brand Index are in.
And the survey says. . . fashion brand importance is up again.

Sure,
consumers need to like what they’re going to wear, so design and style is
important. But when it comes to establishing a real emotional connection with
the customer, you can’t beat brand. In the past decade, brand importance has increased
tenfold for fashion consumers. Currently 30% of 7,500 consumers polled feel brand
is more/much more important in the engagement (and purchase) process.

And
while it’s true consumers are still being cautious about spending, that very
reality is what’s driving them into the arms of true brands. The more
considered a purchase, the greater the role a strong brand plays in the
decision-making process, especially true in the very personal category of
fashion, where the brand is the very source for emotional engagement. And ­– as
the past five years have proven in the aisles of department and apparel
specialty stores – brand can act as a surrogate for added-value engendering
positive behavior.

The
annual survey of 7,500 respondents, 50:50 Men/Women, aged 21 to 65, represents nearly
20% of the Customer Loyalty Engagement Index participants who are first asked
to indicate the importance to them personally of fashion brands, then, on an
unaided basis, are asked which brands are more important to them. This year’s Fashion
Brand Index findings demonstrate the continuing shared space between luxury and
leisure apparel brands, with fashion brands like Armani, Burberry, and YSL all
moving up from an already respectable showing in the top-15, along with leisure
brands like Nike, J. Crew, and Levis.

The
iconic Ralph Lauren has always been our “gold standard” when it came to fashion
brands, but this year it seems as if leisure brands have taken on greater
import for men, and more haute couture brands for women, proving that done
correctly, emotional brand engagement can be a powerful approach to
meaningfully connect with consumers, and not the purview of only one or two
brands. Ralph Lauren/Polo moved from last year’s #1 spot among women to #6 this
year just behind Chanel, Armani, Favorite Sports Team, YSL and Burberry, but
only 1 spot down on the men’s list, from #3 to #4, with Favorite Sports Team,
Nike, and Armani in the 1, 2, and 3 spots respectively.

Our
Fashion 15 are the top-15 fashion brands ranked on the basis of the number of unaided
brand mentions (%) received from consumers.

Favorite
Sports Team 39%

Armani
38%

Nike
35%

Ralph
Lauren/Polo 34%

Burberry
30%

J.
Crew 29%

Calvin
Klein 27%

Chanel
25%

Banana
Republic/YSL 23%

Levi’s
22%

Hilfiger
21%

Coach
20%

Tom
Ford/Dior 19%

Victoria’s Secret/GAP 15%

Brooks
Brothers/Tory Burch/Kate Spade 14%

The
rising importance of fashion brands generally, and Fashion 15 brands
specifically, indicates that value – or more specifically, the perception of
value-via-brand – is of much greater import to consumers, and ultimately, to
the success of fashion brands. So it’s not surprising that consumers are
looking to the brands – and the emotional engagement brands can create – to
make a difference, to meet their expectations, and to delight. In the context
of fashion, value isn’t just what consumers’ dollars buy, it’s how fashion fits
consumers’ lifestyle, self-perception, and expectations, and how well the brand
actually engages.

The
retail marketplace already overflows with an excess of me-too products and
designs, congruous distribution, and bargain basement pricing when things slow
down. Given that reality, how many 100%-cotton black t-shirts do fashion brands
think a consumer will buy, and why would they pay $75 when they could pay $15? The
answer to those questions ultimately comes down to brand.

Find out more about what makes customer loyalty happen and how Brand Keys metrics is able to predict future consumer behavior: brandkeys.com. Visit our YouTube channel to learn more about Brand Keys methodology, applications and case studies.

Tuesday, September 03, 2013

Outgoing Microsoft CEO Steve Ballmer was quoted, “By the early part of this year it was clear to me that perhaps acquisition would be a way to accelerate.” He wasn’t specific as to what they were accelerating, but it seems reasonable to presume that this is an acceleration of growth and, thus, Microsoft’s marketing war with Google.Here’s how things match up in the IT weapons race, including new “ordinance” Microsoft secures via the acquisition of the Nokia Devices and Services business and their related patents. You’ll all have your own opinions, of course, but take a look and see, which you think, will ultimately conquer the other – and in which sectors?Microsoft GoogleBing search Google searchSkyDrive Google cloud storageInternet Explorer ChromeAzure Google CloudWindows AndroidMicrosoft Office Google DocsNokia Lumina phones Motorola phonesLumina-ARM tablets Nexus tabletsNokia Mapping Google MapsIt was Bertrand Russell who noted that “War does not determine who is right – only who is left.” And given that Microsoft’s strategy for combatting competitors has been most focused and effective against single competitors (including robust challengers like Netscape and Lotus), we’ll have to wait see how these battles play out in the near-term. And, ultimately, who is left.

Find out more about what makes customer loyalty happen and how Brand Keys metrics is able to predict future consumer behavior: brandkeys.com. Visit our YouTube channel to learn more about Brand Keys methodology, applications and case studies.

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The Keyhole: Peeking at 21st Century Brands

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About Us

Robert Passikoff, founder and president of Brand Keys, is a sought-after speaker and global thought leader on engagement and loyalty. He has pioneered work in these areas, creating the Customer Loyalty Engagement Index and the Sports Fan Loyalty Index. New York University’s communication school has declared Dr. Passikoff “the most-quoted brand consultant in the United States.”